London’s stock market opened lower following a court ruling favoring Shell regarding greenhouse gas emissions. Legal challenges by environmental groups against the Rosebank and Jackdaw oil and gas fields continue. Economic indicators from Germany and the eurozone are expected to show slight improvements, though overall sentiment may remain subdued due to potential tariffs. AstraZeneca raised its revenue forecasts, while global leaders gather for COP29 amid concerns over climate negotiations and trade tensions under Trump’s upcoming administration.
Stock Market Overview
On Tuesday morning, London’s stock market opened with a decline, reacting to a recent court ruling favoring Shell in the Netherlands.
In the UK, environmental groups are on the brink of a significant legal victory against the Rosebank and Jackdaw offshore oil and gas fields. The Jackdaw field is under Shell’s ownership, while Equinor primarily owns Rosebank, with Ithaca Energy holding a 20% stake.
Meanwhile, in The Hague, judges dismissed an appeal from climate advocacy organizations who contended that Shell was insufficiently addressing its greenhouse gas emissions, leading to the reversal of a pivotal ruling from three years ago.
Market Performance and Economic Outlook
Ipek Ozkardeskaya of Swissquote has indicated that economic indicators for Germany and the eurozone are set to be released today, with expectations of a slight improvement for November. However, she noted that this minor enhancement may not significantly uplift sentiment across Europe, particularly with the looming threat of tariffs under Trump’s administration.
In business news, AstraZeneca has raised its revenue forecasts for the full year and announced a substantial investment in research and manufacturing in the United States.
Here’s a snapshot of the market performance at the start of trading in London:
MARKETS
FTSE 100: down 0.5% at 8,083.16
Hang Seng: down 3.1% at 19,794.63
Nikkei 225: down 0.4% at 39,376.09
S&P/ASX 200: down 0.1% at 8,255.60
US MARKET CLOSE
DJIA: up 304.14 points, or 0.7%, at 44,293.13
S&P 500: up 0.1% at 6,001.35
Nasdaq Composite: up 0.1% at 19,298.76
CURRENCY AND COMMODITY UPDATE
EUR: down to 1.0634 USD
GBP: down to 1.2815 USD
Gold: down to 2,601.70 USD per ounce
Brent: up to 71.86 USD per barrel
Looking forward, key economic events for today include:
- 11:00 CET Eurozone ZEW Economic Sentiment Survey
- 15:00 CET Eurozone Piero Cipollone, ECB board member, speaks
- 11:00 CET Germany ZEW Economic Sentiment Survey
- 14:45 CET Germany Current Account
- 09:00 GMT UK Huw Pill, Chief Economist and Executive Director of the Bank of England, speaks
- 11:00 EST US Consumer Inflation Expectations
During recent discussions, UK Prime Minister Keir Starmer and French President Emmanuel Macron emphasized the importance of strengthening Ukraine’s position as winter approaches, amidst doubts regarding ongoing US support. Their meeting in Paris commemorated Armistice Day and deliberated on strategies to assist the war-torn nation.
In a related note, US President-elect Donald Trump has begun announcing his prospective administration members, with speculation surrounding Florida Senator Marco Rubio as Secretary of State. His team selections are under close observation as Trump hints at transformative changes within the federal government during his second term.
World leaders are converging in Azerbaijan for COP29, but notable figures from major economies are absent, reflecting the repercussions of Trump’s electoral win on global climate negotiations. Over two days, more than 75 leaders are anticipated in Baku, although participation from G20 leaders who contribute significantly to global emissions remains limited.
Additionally, the presidents of the US, China, and other Asia-Pacific nations are gathering in Lima for an economic summit, with the looming threat of trade conflicts under Trump’s leadership overshadowing discussions. This marks Joe Biden’s final Asia-Pacific Economic Cooperation summit before Trump resumes the presidency next year.
BROKER RATING CHANGES
Barclays has upgraded Antofagasta to ‘equal weight’ with a price target of 2,000 pence.
Jefferies downgraded Direct Line Insurance to ‘hold’ with a revised price target of 165 pence.
RBC has raised Metro Bank’s price target to 55 pence.
COMPANY NEWS – FTSE 100
In a notable ruling, Dutch judges have ruled against climate advocacy groups challenging Shell’s commitment to reducing greenhouse gas emissions, overturning a prior landmark decision. The court concluded that the demands from the environmental organization Milieudefensie could not be upheld, stating that the obligations to reduce emissions fall on governments rather than individual companies.
As the legal landscape evolves, two environmental groups are set to present their case regarding the Rosebank and Jackdaw offshore oil and gas fields, emphasizing the environmental impact of fossil fuel emissions.